RBI in action
The RBI has, by an order dated June 21, 2024, imposed a monetary penalty of ₹25,000 on The Hirasugar Employees’ Co-operative Bank Limited, Belagavi, Karnataka, for non-compliance with the Reserve Bank of India directions on ‘Exposure Norms and Statutory/Other Restrictions − UCBs.
The statutory inspection of the bank, conducted concerning its financial position as of March 31, 2022, revealed non-compliance with the Reserve Bank of IndiaRBI directions. Consequently, a notice was issued to the bank, advising it to show cause why a penalty should not be imposed. After reviewing the bank’s reply and oral submissions during the personal hearing, RBI determined that the bank failed to adhere to the prudential inter-bank (gross) and counterparty exposure limits, justifying the monetary penalty.
This action is based on regulatory compliance deficiencies and does not affect the validity of any transactions or agreements the bank has with its customers. The imposition of this penalty is without prejudice to any other actions that the Reserve Bank of India may initiate against the bank.
